[Congressional Record (Bound Edition), Volume 149 (2003), Part 18]
[House]
[Pages 24617-24618]
[From the U.S. Government Publishing Office, www.gpo.gov]




        SUPPORTING THE GOALS AND IDEALS OF COLLEGE SAVINGS MONTH

  Mr. LaTOURETTE. Mr. Speaker, I move to suspend the rules and agree to 
the concurrent resolution (H. Con. Res. 270) supporting the goals and 
ideals of College Savings Month.
  The Clerk read as follows:

                            H. Con. Res. 270

       Whereas the people of the United States recognize the 
     challenge and accept the responsibility of obtaining the 
     education and skills that will enable them to successfully 
     compete in the global economy of the 21st century;
       Whereas since 1980 the rate of increase of the cost of 
     postsecondary education has exceeded the rate of increase of 
     inflation, public assistance to students, and family income;
       Whereas the rapidly rising cost of postsecondary education 
     poses a serious threat to the ability of the people of the 
     United States to ensure their and their children's access to 
     postsecondary education;
       Whereas since 1992 the annual amount of new student loan 
     commitments has increased from $15,000,000,000 to 
     $35,000,000,000, which represents an increasing burden on 
     college graduates to pay for their college education long 
     after that education is completed;
       Whereas it is in the interest of the Nation to ensure that 
     the people of the United States have the opportunity to 
     obtain a postsecondary education and to encourage parents to 
     save for their children's education;
       Whereas many States have offered tax incentives to 
     encourage their citizens to save for educational expenses;
       Whereas additional Federal tax incentives to encourage the 
     people of the United States to save for educational expenses 
     became effective after December 31, 2001; and
       Whereas the National Association of State Treasurers and 
     the College Savings Plan Network have requested that the 
     Congress designate September as College Savings Month in 
     order to raise public awareness about the need to save for 
     educational expenses: Now, therefore, be it
       Resolved by the House of Representatives (the Senate 
     concurring), That the Congress supports the goals and ideals 
     of College Savings Month.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Ohio (Mr. LaTourette) and the gentlewoman from California (Ms. Watson) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Ohio (Mr. LaTourette).


                             General Leave

  Mr. LaTOURETTE. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days within which to revise and extend their 
remarks and include extraneous material on H. Con. Res. 270.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Ohio?
  There was no objection.
  Mr. LaTOURETTE. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, H. Con. Res. 270, introduced by the gentleman from 
Michigan (Mr. Rogers), aims to raise awareness about the need to save 
for higher education expenses.
  It is increasingly imperative for today's young people to possess 
college degrees in order to compete in our Nation's workforce. At the 
same time, the cost of undergraduate college educations continues to 
rise at a faster rate than inflation.
  Behind only their own retirements plans and mortgages, parents will 
probably put more money into their children's college educations than 
anything else in their lifetimes. This reality can severely limit 
options for those students and families who have not set aside funds to 
pay for college.
  Mr. Speaker, there is hope for parents and students who seek to 
defray the high costs of higher education. Many tax-deferred investment 
opportunities, low-interest loans and scholarships can assist with 
paying for college, and they are available for those who look hard 
enough. Hopefully, the House's consideration of this resolution will 
encourage all future college students, and parents of future college 
students, to fully explore all such options.
  Mr. Speaker, few things are more valuable to one's career, financial 
security or happiness than their college education. Unfortunately, few 
things are more expensive than a college education. It is important 
that all Americans interested in going to college take the necessary 
steps to ensure that college is something they can afford.
  Mr. Speaker, I urge all Members to support H. Con. Res. 270. I want 
to thank the gentleman from Michigan (Mr. Rogers), and urge passage of 
the bill.
  Mr. Speaker, I reserve the balance of my time.
  Ms. WATSON. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, College Education Month focuses our attention on a 
question Americans with children are asking themselves: How will I be 
able to afford a college education for my children?
  Rising tuition rates force families to borrow thousands of dollars to 
fund their children's college education. The debt that these families 
and new graduates face after graduation is daunting. The majority of 
college students today will have borrowed over $20,000 by the time they 
graduate.
  As Federal and State governments reduce student financial aid because 
of budgetary constraints, families have to bear more of the financial 
responsibility for college costs, and they need to plan accordingly.
  To encourage families to save for their children's college education 
well before college, the College Savings Plans Network was formed in 
1999 as an affiliate to the National Association of State Treasurers. 
To make higher education more attainable, the Network serves as a 
clearinghouse for information about existing college savings programs.
  Tuition rates have risen well past the rates of inflation. During any 
17-year period from 1958 to 2001, the average annual tuition inflation 
was between 6 percent and 9 percent, ranging from 1.2 times general 
inflation to 2.1 times general inflation. On average, tuition tends to 
increase about 8 percent per year. An 8 percent college inflation rate 
means that the cost of college doubles every 9 years. For a baby born 
today, this means that college costs will be more than three times the 
current rate when the child matriculates college.
  College savings plans allow participants to save money in a special 
college savings account for college applicants' education expenses. 
Contributions can vary, depending on individual saving goals. Savings 
account funds can be used nationwide at eligible institutions.
  To raise awareness about these programs, the Network has designated 
September ``College Education Month.'' This resolution supports the 
Network and its efforts to help families plan, prepare and save for 
college education without relying heavily on student loans and 
financial aid.
  The steadily increasing costs of college education should not stop 
America's youth from reaching their goals and aspirations.
  I urge passage of this important resolution.
  Mr. Speaker, I reserve the balance of my time.
  Mr. LaTOURETTE. Mr. Speaker, it is my pleasure to yield such time as 
he may consume to the gentleman from Michigan (Mr. Rogers), the sponsor 
of the resolution.
  Mr. ROGERS of Michigan. Mr. Speaker, I thank the chairman for 
yielding me time, and I thank the gentleman from Massachusetts (Mr. 
Tierney) for cosponsoring this legislation, working in a bipartisan way 
to recognize a very powerful tool that many do not know even exists.
  Mr. Speaker, one of the reasons for this resolution is to remind many 
Americans that there is a possibility that you can save and compound 
and fight the rising costs of getting your children a quality 
education.
  I remember in Michigan we started something like this where it is 
tax-free in and tax-free out in a 529. You do not pay Michigan income 
tax if you get into one of these education funds. At the announcement, 
a woman brought a jar full of pennies. She was so excited, she said, 
``You know, no longer do I have to fill this jar with pennies. I can 
put it somewhere where these pennies will become dollars and hundreds 
of dollars for my child to have and get a

[[Page 24618]]

chance at a quality education in America.'' How true that was, and how 
inspiring it was for that woman to recognize that this is such a 
powerful instrument for parents all across this great country, to have 
the benefits of a tax-free way to save and compound for offsetting 
these rising costs of getting that education.
  Mr. Speaker, 86,000 people since the introduction of this bill, in 
Michigan alone, have signed up and are putting $25, $15, $10 or $100, 
as much as $5,000, away in these funds and watching it grow, tax-free, 
certainly at the State level, and tax-free at the Federal level, thanks 
to all the Members of this Chamber, when you withdraw it for your 
child's education. You can start to fight back the cost of books and 
computers and room and board, and, certainly, that cost of tuition 
through these funds.
  I want to, again, thank my colleagues on the other side of the aisle 
for working in such a great, bipartisan spirit to reach a very laudable 
goal, and that is quality, accessible, higher education and vocational 
training for every American. This certainly empowers hundreds of 
thousands of them to do that right here at home.
  Ms. WATSON. Mr. Speaker, I yield such time as he may consume to the 
gentleman from Texas (Mr. Bell).
  Mr. BELL. Mr. Speaker, I thank the gentlewoman for yielding me time.
  Mr. Speaker, I rise today to join with the gentlewoman from 
California (Ms. Watson) as well as the gentleman from Ohio (Mr. 
LaTourette) in support of H. Con. Res. 270. Certainly, nothing could be 
more important in this day and age to recognize than saving for 
college.
  Mr. LaTOURETTE. Mr. Speaker, it is my pleasure to yield such time as 
he may consume to the gentleman from Nevada (Mr. Porter).
  Mr. PORTER. Mr. Speaker, I rise in support of H. Con. Res. 270, 
supporting the goals and ideals of College Savings Month.
  For many students, attending college following high school graduation 
is just the next phase in their lives before joining the workforce. 
But, for some, the choice to attain a postsecondary education is not as 
easy as just getting accepted into a program of their choice.
  With the growing cost of postsecondary education, many students are 
forced to take out student loans, loans that can often exceed $30,000 a 
year. Entering the workforce with these kinds of commitments can often 
be intimidating for a newly-graduated student.
  Having had two children in college at one time, I understand how 
saving for our children's postsecondary education has become 
increasingly important, as we continue to see the costs of the 
postsecondary education steadily rising.
  Currently, the United States Tax Code offers options for families to 
do just that, save money, to set aside for the value of that education. 
Two such options are the 529 College Savings Plan and the Coverdell 
Accounts. Both of these plans have benefited thousands of students and 
helped their families meet the rapidly escalating costs associated with 
obtaining a college degree.
  Mr. Speaker, I plan on introducing the Education Savings Act of 2003 
tomorrow that will clarify the law to make it clear that employers can 
make tax deductible contributions to employees in their 529 and 530 
education accounts, available to all employees at every income level. 
The Education Savings Act will clarify that any amounts contributed to 
these educational accounts will not count toward an employee's gross 
income.
  Planning for our children's postsecondary education by setting up 
savings accounts is essential, now more than ever.
  I would like to take this opportunity to thank my colleagues, the 
gentleman from Michigan (Mr. Rogers) and the gentleman from 
Massachusetts (Mr. Tierney) for their efforts to give this important 
issue the recognition it deserves.
  Mr. ROGERS of Michigan. Mr. Speaker, as the sponsor of H. Con. Res. 
270, I rise in support and wish to thank Chairman Davis for bringing it 
to the floor today and to thank Congressman John Tierney for joining me 
in sponsoring this resolution. H. Con. Res. 270 recognizes September as 
College Savings Month in conjunction with the National Association of 
State Treasurers and the College Savings Plan Network in order to raise 
public awareness about the need to save for educational expenses.
  Since 1980, the rate of increase of the cost of postsecondary 
education has exceeded the rate of increase of inflation, public 
assistance to students and family income. This rapid rate of increase 
poses serious threats to the ability of parents to save for and 
individuals to access postsecondary education.
  Given that it is in our Nation's best interest to have a highly 
educated population and to encourage parents to save for their 
educational expenses, many States, like Michigan, offer tax incentives 
to encourage their citizens to save for educational expenses. As a 
State senator, I sponsored legislation to develop a 529 plan that 
provides tax-free contributions and withdrawals made to an education 
savings account. Soon after becoming a Congressman, I introduced 
legislation to make distributions from State-sponsored prepaid tuition 
or college savings plans tax free. I was pleased when this provision 
was included in the 2001 Economic Stimulus legislation that was signed 
by the President. Education savings accounts are one way that we can 
ensure that individuals at every income level have the ability to 
contribute to their child's or a relative's or even their own 
postsecondary education.
  I realize many working families are trying to save for college and it 
would be ideal if no student had to take out a student loan. But for 
those who do incur debt, we need to make sure every student loan 
borrower has a real opportunity to borrow at the lowest rate possible. 
In order for borrowers to reach the lowest rates possible, there must 
be competition in all aspects of the student loan program, including 
consolidation loans.
  In order to ensure that we instill such competition, we will need to 
make sure that we repeal the single holder rule during the 
reauthorization of the Higher Education Act, which is currently moving 
through the Education and the Workforce Committee. I want to thank my 
colleagues, Chairman Boehner and Congressman McKeon, for their efforts 
to keep college costs under control. It will be part of my commitment 
to them as well as students and families everywhere that they can have 
the benefit of competition from the more than one thousand qualified 
lenders in the program when they consolidate their loans and, thus, 
allow them to further reduce their debt burden by taking advantage of 
historically low fixed interest rates, just as other borrowers are able 
to do every day.
  In conclusion, I encourage my colleagues to support H. Con. Res. 270 
and the goals and ideals of College Savings Month.
  Ms. WATERS. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  Mr. LaTOURETTE. Mr. Speaker, I urge passage of the resolution, and I 
yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Ohio (Mr. LaTourette) that the House suspend the rules 
and agree to the concurrent resolution, H. Con. Res. 270.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the concurrent resolution was 
agreed.
  A motion to reconsider was laid on the table.

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